Farmer Business Developments recorded profits of €9.89m in 2021, as its hotels business kicked back into action following the COVID-19 lockdowns.

The firm’s annual report for 2021 noted that revenues from its hotels and resorts business hit €13.13m last year, having suffered a loss of €1.63m in 2020.

Although overall profits at Farmer Business Developments were back from the €37m recorded in 2020, the company pointed out that last year’s figures were skewed by a lucrative property sale in Berlin.

The sale of lands in the German capital by Bulberry Properties – which is 61% owned by Farmer Business Developments – for €97.7m helped to bolster the firm’s figures for 2020.

However, the 2021 results were primarily based on increased revenues from its hotels and resorts portfolio.

This includes the Castleknock Hotel in Dublin, Faithlegg in Waterford and The Heritage in Laois, as well as the Sunset Beach Club and La Cala Resort in Spain.

In addition, the firm purchased the Killashee Hotel in Naas earlier this year.

Road to recovery

Commenting on the company’s results, Farmer Business Developments chair Padraig Walshe said its hotel business was “well on the road to recovery in both Spain and Ireland”.

“Our Berlin investment remains on track to deliver handsome rewards,” he added.

The improved performance of FBD Holdings is a further cause for optimism.

Dividend income from the insurance company in 2021 delivered €8.5m to Farmer Business Developments.

Meanwhile, dividends to the 4,400 shareholders of Farmer Business Developments will total 17c/share for 2021.

Shares

Farmer Business Developments has moved ahead with a voluntary share buy-back scheme, which is open until 22 July.

The company is committing €2m to the scheme, and is paying a price of €1.53 per ordinary share.

While the company claimed that the purchase price offered was 75% above the average paid on the grey market, some farmer shareholders maintained that the offer was too low.